Stock throughput protection
Beyond the practical risk mitigation measures vineyards are deploying, viticulturalists can opt for a more comprehensive protection for their produce.
Stock throughput protection ensures end-to-end coverage throughout the supply chain against wildfires, droughts, floods, and earthquakes if required. The cover starts when the grape is picked, right through to the final customer delivery.
A comprehensive stock throughput policy includes bespoke valuation provisions. This is particularly important as climate change can have varying effects on grapes and the wine they form.
For instance, warmer temperatures would be welcome for UK and New Zealand viticulturalists, potentially boosting the yield and subsequent value. Yet in previously warm climates such as California and Chile, this may lead to wildfires. What’s more, with a stock throughput policy, viticulturalists can not only get valuations, but they can also acquire enhanced temperature deviation, decay, and deterioration coverage throughout the supply chain cycle, as well as catastrophic coverage for extreme weather events.
Stock throughput protection ensures end-to-end coverage throughout the supply chain against wildfires, droughts, floods, and earthquakes if required.
Key risk information and required data to keep in mind:
- Wildfire preparedness plans to include shrub/brush management.
- Barrel storage and stacking - How high are barrels stacked? What racking systems/equipment do the assured use? Are they strapped?
- Statement of Values (SOV) to include COPE details and survey reports on file, if any.
- Splits between cave/subterranean storage, barrel exposure, tank exposure (inside and outside), and finished/ cased products).
- Confirmation that the locations have overhead sprinkler protections.
- Have the Californian locations been retrofitted for earthquake?
- Transit exposures, including inbound, outbound, and intercompany shipments.
- Five-year loss history.